IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-65
IC S01 - Exam Principles And Practice Of Insurance And Survey And Loss Assessment-65
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Q 1. Which legal entities can impact the acceptance of a complaint against an insurer?
a) Court
b) Consumer forum
c) Arbitration
d) All of the above
e) None of the above
Q 2. What protection does the Merchant Shipping Act, of 1958, provide to shipowners?
a) Protection against piracy only
b) Protection against accidents at sea only
c) Protection against cargo damage only
d) Protection against financial liabilities, with certain limitations
e) Protection against environmental pollution only
Q 3. Why is on-the-spot inspection important for surveyors during a claim assessment?
a) To plan a vacation
b) To gather clues about the cause of loss or damage
c) To organize a party
d) To write a novel
e) To learn about the insured individual's favorite music
Q 4. What inconsistency in the insurer approach contributes to confusion among surveyors?
a) Clear guidance on policy interpretation
b) Consistent enforcement of liability determinations
c) Conflicting expectations regarding surveyor reports
d) Timely settlement of claims
e) None of the above
Q 5. What is the primary purpose of valuation in insurance policies?
a) To increase the premium amount
b) To determine the cause of loss
c) To find out the monetary value of the loss/damage
d) To assess the policyholder's financial status
e) To speed up the claims process
Q 6. In what timeframe does the insured generally need to furnish details on the cause and extent of loss for fire and engineering claims?
a) Within 24 hours
b) Within 7 days
c) Within 30 days
d) Within 15 days
e) Within 1 month
Q 7. What is one of the key instruments a surveyor can use to maintain a positive relationship with the insurer during a survey assignment?
a) Offering lavish gifts and incentives
b) Providing vague and ambiguous reports to avoid disputes
c) Engaging in open and constructive feedback interactions
d) Ignoring communication from the insurer until the survey is complete
e) Focusing solely on meeting personal deadlines without regard for insurer needs
Q 8. What is a common practice among small traders and proprietory outlets regarding books of accounts?
a) They maintain multiple sets of records
b) They maintain books of accounts in conformity with statutory requirements
c) They often have professionally audited records
d) They rarely maintain any books of accounts
e) They maintain books of accounts only for tax purposes
Q 9. What is the first step in determining the sum insured in a profits policy?
a) Identifying the net profit
b) Specifying the insured standing charges
c) Adjusting the gross profit
d) Deciding the indemnity period
e) Projecting future profits
Q 10. What type of loss is excluded from coverage under television insurance?
a) Theft and burglary
b) Depreciation and wear and tear
c) Earthquake and flood
d) Fire and lightning
e) Mechanical or electrical breakdown
Q 11. What are the "Institute" Clauses primarily used for?
a) Inland transit within the country by rail or road
b) Transit by sea only
c) Transit by air only
d) Transit by sea, air, road, rail, or registered post
e) Transit in conjunction with an overseas voyage
Q 12. In which type of insurance is the Air Freight Clause typically found?
a) Fire Insurance
b) Marine Cargo Insurance
c) Motor Insurance
d) Health Insurance
e) Life Insurance
Q 13. Why is it challenging to determine the mathematical value of risks in general insurance?
a) Because life insurance presents difficulties in collecting statistical data.
b) Because insurers do not use statistical methods in general insurance.
c) Because it is not possible to obtain experience from a large number of similar cases exposed to the same hazard in general insurance.
d) Because risk measurement is not important in general insurance.
e) Because insurers do not use scientific methods in determining premiums in general insurance.
Q 14. In what circumstance does a policy become voidable according to the standard fire and special perils policy condition?
a) If the insured fails to disclose any material fact
b) If the insurer fails to process claims promptly
c) If the insured incurs losses due to natural disasters
d) If the insurer cancels the policy without notice
e) If the insured fails to renew the policy on time
Q 15. Why is the principle of indemnity not typically applicable to personal accident insurance?
a) Human life is not insurable
b) It's impossible to estimate monetary losses in accidents
c) Insurers don't offer such policies
d) Personal accidents are not covered under insurance
e) Indemnity is against public policy